Hey guys, I signed up for paypal and have a few questions. I signed up for the personal account. From what I can tell so far, it's not much better than mailing a money order in the mail. It looks like when someone pays me, it takes about 5 days for the payment to "clear". It also looks like if I want to have immediate payment, I have to sign up for the business account and pay them 2.9% on every transaction. Someone sent me a credit card payment and I can't accept it unless I sign up for the business account. Does that sound right? It also shows I accept credit card paypal payments on my auctions when I obviously don't. Do you guys here have the personal or business account?
Brent
I have a business account on paypal.It's just easier.You can then accept any form of payment.I also have my account connected to my checking account to transfer money from paypal to me.They charge enough fees I don't need to give them $1.50 to write me a check.Also it's really the only game in town since it looks like bidpay is history.
Ditto. I have a business account too, and the reason I signed up for it initially is that I was in this same situation. Yeay, they do charge 2.9percent, but 3percent is what credit card companies charge you if you accept credit cards in a shop.
I think it's a nice deal - the transfers are instant, and I can also transfer money into my checking account for free. Usually though, I just spend the money I make on ebay.
Wes
Brent,
I have a PayPal Personal Account. It suits me just fine. I can pay anyone with my choice of credit card, bank account or PayPal balance. However, PayPal only allows me to receive payments funded with PayPal or bank account balances and only up to $500 per month. All with NO fees!!
I do some selling on eBay but not enough to justify the fees of the Business Account. I warn every buyer of the funding requirement. If someone tries to pay using a credit card, I simply deny the payment. The only way to receive payment in that manner is to upgrade to the Business Account. In my opinion, the fees are too high and can really add up for high dollar items. Also, PayPal takes the fees regardless of how the buyer pays. For example, they still charge the fees even if the buyer pays using bank account or PayPal funds. Nice money game they have going!!
But as you heard, some sellers like the convenience. To each his own. Good luck with it.
Paul
Also, I found out the hard way. With this buyer protection, the buyer can get there money back if they change there mind. Even if the seller is in the right. I sold some stuff on ebay and a week later the woman said it was as discribed but decided she wanted to return it because her daughter didn't want it. She said she wanted me to pay the shipping "both ways". I told her I wasn't a store and a deal is a deal. She complained to Paypal and the took the money out of my bank account and gave it back. Its not over but I'm sure my 100% feedback will have a negative by the time I'm done with her.
Paypal is the best option all the way around, even of their charges are high (and I agree that they are). You can always state in your auction that buyer must pay paypal fees if paying with paypal, etc..
Good Luck
I have only gotten 3 paypal payments. One was an e check that has not cleared yet, one cleared immediately, and the other was a credit card payment that I denied. I guess the fees are only assessed when you take credit cards?
I don't see any fees on my summary page.
logic2,
You are incorrect. eBay policy is that you CANNOT charge the buyer extra for PayPal fees. Check eBay rules. You may have gotten away with it so far but they will catch you eventually, particularly if a bidder complains.
Paul
Call me old fashion but i like postal money orders. Get the money order... chat with the women there and mail it all in 1 stop. There isn't anything on ebay i have to have in 2 or 3 days!
Well, just figured out something else about paypal that I don't like. I listed an item last night and stated in my auction that I accept paypal, but not credit card payments. That's obviously a big no-no. ebay removed my auction. Mu understanding is that if someone sends you a paypal credit card payment, you HAVE to upgrade to premier account and accept it and pay the 2.9%. You can't tell a buyer you don't accept credit card payments. If I'm understanding this wrong, someone that has more experience with paypal please let me know.
Brent,
Check out my previous two posts on this thread. I have used a simple PayPal Personal Account on eBay for a long time. In my auction description it's stated that the buyer has the option to use PayPal but I only accept PayPal funded through PayPal or bank funds, not credit cards. Do not use the PayPal icon (logo) in your auction. If you do, the assumption is that you accept any kind of payment from PayPal. That's why eBay killed your auction.
Paul
Paul,
the email below is what I rec'd from ebay:
"We would like to take this opportunity to let you know what part of your listing is not permitted.
Your listing(s) contains the following information:
In Description: I do not accept Paypal credit card payments
Sellers who offer PayPal as a payment option in the listing process must accept all forms of PayPal payment, without restriction.
For example, it is *not* permitted to state:
"I only accept cash transfers with PayPal (no credit cards or echecks)" "I only accept payments with PayPal over $15"
Sellers must have a Premier or Business PayPal Account or be willing to upgrade from a Personal PayPal Account to a Premier or Business Account if sellers receive a credit card payment. Sellers may not communicate to buyers that they accept, or will not accept, specific forms of PayPal payment.
Please be aware that you are not required to use PayPal as an accepted form of payment for your listings. However, we hope that you will realize the protection and convenience that PayPal offers".
According to the info, sellers may not communicate to buyers how they will accept or not accept paypal payments. Maybe your auctions just have not been caught by them yet?
Brent
Pablo..according to the boreds on ebay you now must take CC if you take PP..
I did not want to start a PP account, now that Bidpay is gone I likely wont sell anyway.. be 2 years in a few months.
Always use delivery confirmation..lotsa scumballs know that if they claim it never arrived and seller cannot prove otherwise that they can and will do a chargeback!! Then you are out the part and shipping!!
Brent,
Thanks for the info. You sure got caught by eBay. So far, I haven't received anything from eBay on my practices. But then I never use PayPal as a payment option or post the PayPal logo in my auctions. If forced by eBay, I'll just quit offering to accept limited PayPal payments because I won't pay those fees. Since PayPal is owned by eBay, I assume they are trying to raise more revenue by forcing sellers into upgrading to fee generating Business accounts.
dodogas...
That's the good and bad points of credit card payments. I love it when sellers take PayPal because I know my credit card company will stand behind me in the event of a problem. However, as you noted a seller can be held hostage by the buyer. (Another reason I won't upgrade to the PayPal business account.)
By the way, I always make sure I have proof of shipping. Insurance receipt or Delivery Confirmation for most items. For small dollar items, the post office receipt shows weight, zip code and postage amount. Any of these documents represent proof of shipping.
Great collecting!!!!
Paul
Brent:
I ran accros a nifty idea in an e-bay auction. This fellow figured out how to limit the amount of fees asociated with the transactions. He stated his shipping as $40.00 for the item (high cost for the item involved) and then stated that
"Cash and Money Orders will qualify for reduced shipping of $10.00".
He didn't state that he wouldn't accept Pay Pal - just that he would give a reduced shipping rate to those individuals that paid with cash/check or a M.O.
'They' didn't pull his auction, so this seems to be a way around the fees.
Later . . .
Jim
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www.T-waysGraphics.com
...or, you could include the PayPal fees in your 'handling' charges...I personally hate handling charges, but if the guy sends a money order he pays for it, not you - why should the seller eat the fee? Let the buyer pay for the convenience...
Thanks for the replies guys. It seems like a catch 22. If you list paypal as an option (which is obviously a plus for buyers), you must accept credit cards, which will at some point happen (which is obviously a negative for sellers to pay 2.9%). My first payment I rec'd was a credit card payment. But ebay knows how to make money.
T-way, I might figure out a variation on that idea. I don't like handling charges, I usually stay away from auctions that charge handling charges. I guess I understand now why they charge handling charges.
As an eBay seller, I prefer to keep "fees" as low as possible. Matter of fact, I generally charge only actual shipping cost plus a buck or two for my time and materials. As a buyer, I hate paying "handling" charges or even inflated shipping fees. Therefore, I try to be fair as a seller.
The problem with upgrading to the PayPal Business account is that you're stuck with the fees forever. I've been on eBay over 8 years and don't mind waiting for a mailed payment. If you sell enough, that 3% adds up over time.
Re: "...or, you could include the PayPal fees in your 'handling' charges"
Gulfiend...
The problem with the handling charge is that you will still have a problem with eBay if you state that the charge is for PayPal payments only. If the charge is for all bidders then you will irritate bidders who pay with check or money order. Personally, I refuse to bid if a seller has an inflated handling charge or shipping cost.
Paul
...hey - I hate them too...but you gotta do what you gotta do...you could always ask the buyer how he intends to pay - then make the determination on what to charge...seems to me as long as you don't state such a policy, you got no problems...
...besides, it's supposedly against ebay rules to offer a seller $$ to end an auction early - but NOBODY does that, right??...
...personally I think PayPal makes enough off the interest where they shouldn't have to stick the seller - and if they DO have to have that 3%, then the buyer should pay for the convenience...seems like BidPay did that, but like Western Union, they just wanted too much damn money for their "service"...
...you're right - 3% does add up over time...but a 3% handling charge isn't likely to rub anyone the wrong way...
...I just ran some auctions and one of the buyers sent me PayPal for the winning bid amount (nothing for shipping) before I had the shipping quoted - so, he had to send two PayPal payments...either I add a little to the shipping, or I get hit TWICE for PayPal fees - just because the seller jumped the gun...
...and, just for the record: I don't charge a 'handling' charge when I sell on ebay, just actual postage, plus insurance and delivery confirmation...I recycle packing material that I get for free as a result of my job, so I don't have to charge for that...and I have received no complaints about my packing/shipping job in over 1000 transactions...
I am going to think about adding a 3% handling charge if I upgrade. I can't remember if you can do the handling charge as a percent or a total fee. I guess I need to read the agreement again, but when you upgrade to Premier, do you pay the fees on EVERY transaction, or just credit cards?
That's the whole problem!! Once you upgrade to the PayPal Business account, fees are incurred for ALL transactions even if the buyer pays with PayPal or bank account funds. I wouldn't have a problem with it if the fees were only charged when accepting credit card payments. That way you could decide which auctions to list with PayPal as a payment option.
Paul
Here is my two cents. I accept paypal and don't give a rip about the fees because I feel paypal attarcts more buyers which pushes the final price up. Maybe not the high rollers that have the $$$$ to play but America as a whole lives on credit cards.Get one bid that bumps up the final price and you pay the paypal fees. Might be different once you cross the $1000 mark but I don't ever list stuff that would run that much. As far as handling charges thrown in the shipping I always see what it would cost to ship and unless I get the item dirt cheap I stay away from it if shipping seems out of line. I can't say I never bid on it but I better come out about half of what the item is worth in order to pay their handling fees. I think the seller is shooting themselves in the foot when they add a handling charge that is huge in their austions. I charge $1 for handling to cover a box and shipping materials here and there.To each there own and remember the bottom line, ebay and paypal still end up the big winners.
So far great post with nobody slamming anyone else. Ted
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Ted Pam & Ethyl Roach
Lodi CA.
Looking for Signal, Hancock, Mohawk, Douglas, Gilmore and Richfield
pca-west.org